Daily Times

Gold continued scaling higher amid weakening US dollar and shot to near three-week highs with over one percent gain on Tuesday. As of 14:10 GMT, gold was available in the international market at $1,812.80 per ounce with a gain of $20.10. Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs91,800 with a gain of Rs1,000. The closing price of yellow metal in the country remained Rs90,800 on Monday.

According to analysts, gold prices hit their highest in nearly three weeks, as a pullback in the dollar made bullion less expensive for holders of other currencies, while investors awaited minutes from the US Federal Reserve for clarity on monetary policy. They said that it is mainly a weakening US dollar that is boosting gold prices. Gold was sold down heavily after June FOMC meeting and now that expectations have been priced in, buyers are back to the market, they said. However, they were of the view that gold’s upside potential might be limited against the backdrop of global hawkish turn in monetary policies. The dollar weakened 0.1%, moving further away from a three-month high hit last week.